According to Christine Lagarde, the rate of inflation in the euro zone will probably remain very high for some time to come. The ECB intends to take action against this.
The European Central Bank (ECB) wants to resolutely continue its fight against inflation and continue to take consistent action against inflation. “We must not and we will not allow high inflation to take hold. We are committed to bringing inflation back to our medium-term objective and we are committed to taking the necessary action to do so,” said ECB President Christine Lagarde in a speech in Estonia’s capital Tallinn on Friday. “Inflation in the eurozone is far too high.”
In October, the inflation rate in the euro zone reached a record 10.7 percent. In some member states, such as Estonia, where Lagarde appeared in Tallinn at an event hosted by the Estonian central bank, it has even risen to over 20 percent in recent months. The ECB is aiming for medium-term price stability with two percent inflation for the common currency area. In order to curb inflation, the ECB decided last week to raise interest rates sharply for the third time in a row
According to Lagarde, the economy in the euro zone is currently facing an “extremely challenging environment” in which the inflation rate is being fueled from several sides. “The combination of shocks we are facing – war, energy, disrupted supply chains, demand reallocation – means that inflation is likely to stay above our target for some time,” said the ECB President. “We are ready to adapt all our instruments within our mandate.”
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
